Home Selling in Stillwater>Question Details

Danic, Home Seller in Stillwater, MN

My husband and I bought a house in June '09 and need to sell it this spring. We heard that you do not have to pay back the $8,000 tax credit if

Asked by Danic, Stillwater, MN Wed Feb 24, 2010

we sell for a loss but our question is what exactly is seen as a loss? for example, does this mean that after selling costs and everything the house costs us $2,000 we won't have to pay the $8,000 back?

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6
Always contact a accountant for the answer that is correct in these types of questions. Let me know if I may help with anything else.
0 votes Thank Flag Link Wed Mar 3, 2010
I think its best to consult an accountant for the correct answer.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Wed Feb 24, 2010
Refer your question to your tax consultant --also see IRS website link--
http://www.irs.gov/newsroom/article/0,,id=206293,00.html
0 votes Thank Flag Link Wed Feb 24, 2010
I believe the basis you use is what you paid minus the $8,000. So if you paid $200,000, your basis would be $192,000. In other words the IRS looks at it as you paid $192,000, not $200,000 for the house. I think the loss is calculated from the sale price of the home only.
0 votes Thank Flag Link Wed Feb 24, 2010
http://www.irs.gov/pub/irs-pdf/f5405.pdf

Check page 3 number 11 of the PDF. That will help!
0 votes Thank Flag Link Wed Feb 24, 2010
Danic, if you have not done your tax returns for 2009, the best and more accurate source of information is your accountant/tax prepar person. If you did, contact the IRS direclty.

http://www.irs.gov/newsroom/article/0,,id=204671,00.html

http://www.irs.gov/newsroom/article/0,,id=177937,00.html

Benito.
0 votes Thank Flag Link Wed Feb 24, 2010
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